OPENING: GDX MARCH 16TH 18.5/DEC 15TH 23.5 POOR MAN'S
... for a 3.85/contract debit.
Here, I'm going with the deep in the money 90 delta long, the out of the money 30 delta short. The long functions as a stand in for the stock with the short providing cost basis reduction.
I'll look to roll the short call at significant loss of value to reduce cost basis and take profit at anywhere north of 10% of what I put the setup on for ... .
Here, I'm going with the deep in the money 90 delta long, the out of the money 30 delta short. The long functions as a stand in for the stock with the short providing cost basis reduction.
I'll look to roll the short call at significant loss of value to reduce cost basis and take profit at anywhere north of 10% of what I put the setup on for ... .
Trade attivo:
Rolling up the March 16th 18.5 long call to the March 16th 19 long call on increase in value and to the 90 delta strike for a .44 credit; cost basis now 3.41.
Trade chiuso: obiettivo raggiunto:
Covered today for a 3.80 credit. 3.80 - 3.41 = .39 ($39)/contract profit -- 10% ROC in 16 days.